A man badly beaten inside his cell at Canberra's jail in early October was advised that he if told anyone about the incident, his assailant would be back "to finish him off".
Brett Fanti, 41, applied for bail on Friday on the basis of ongoing concerns for his safety while in prison and to seek "culturally holistic" medical treatment from the Winnunga Aboriginal health service.
Solicitor Daniel Turner, from the ACT/NSW Aboriginal Legal Service, told the court that Mr Fanti had been in his cell when he was attacked by another inmate and hit three times in the head, stomped on and had boiling water poured on him, causing third-degree burns.
Mr Fanti received a fractured eye socket and appeared in court by video link with his left forearm heavily bandaged.
Police attended the jail and took a statement from the victim, with that investigation still underway.
In opposing the application, a prosecutor said that a witness in one of Mr Fanti's upcoming cases had expressed considerable concerns for his safety should the applicant be released on bail.
Mr Fanti had been remanded in custody at the Alexander Maconochie Centre on charges including assault occasioning actual bodily harm and aggravated burglary.
Julie Tongs, from the Winnunga Aboriginal Health Service, said that the service had supplied a letter of support for Mr Fanti's bail application.
She had received advice that Mr Fanti's burns were quite significant and there had been seeping of fluids through his burns bandages.
"This is a very serious assault; jail is no place for a burns victim," she said.
"He [Fanti] is not in a good way. He is very traumatised by this incident and fearful for his safety in jail.
"This sort of thing is going on far too often out there [at the prison]. The punishment should only be to lock people up, not to have them abused and traumatised while they are in there."
Magistrate Bernadette Boss granted Mr Fanti bail, and imposed strict sets of conditions.